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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarah Duterte Construction Firm started work on three job sites during the current year. The following data was gathered in relation to the three jobs sites construction: Est. Cost to Billings Complete Site Contract Cost Incurred on Collections Price Contract 500,000 400,000 365,000 100,000 100,000 500,000 100,000 A В 700,000 250,000 400,000 100,000 50,000 C Requirements: 1. If the outcome of all the projects can be estimated reliably, what amount of income should be reported for the current year? 2. If the outcome of all the projects can be estimated reliably, what would be the amount of Construction in Progress to be reported in the Statement of Financial Position for the current year?
Transcribed Image Text:Sarah Duterte Construction Firm started work on three job sites during the current year. The following data was gathered in relation to the three jobs sites construction: Est. Cost to Billings Complete Site Contract Cost Incurred on Collections Price Contract 500,000 400,000 365,000 100,000 100,000 500,000 100,000 A В 700,000 250,000 400,000 100,000 50,000 C Requirements: 1. If the outcome of all the projects can be estimated reliably, what amount of income should be reported for the current year? 2. If the outcome of all the projects can be estimated reliably, what would be the amount of Construction in Progress to be reported in the Statement of Financial Position for the current year?
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